GOVERNED RANGE BALANCED LIFESTYLE STRATEGY (ANNUITY) FACTSHEET What is a Lifestyle Strategy? As you approach your retirement date, you'll probably want to reduce your investment risk. This Lifestyle Strategy is designed to help you do that. Your investments are gradually switched from higher to lower risk portfolios as you get closer to retirement. The Lifestyle Strategy is not compulsory. You can start or stop it at any time, but it must apply to all contributions to your plan. What governance process is in place? Your Lifestyle Strategy comes with ongoing governance. This simply means that our investment experts check it regularly. It allows us to maintain the best mix of assets in line with the risk category - and to make sure it is performing in line with its overall objectives - aiming to give you the best returns. The value of your investment can go down as well as up and you may not get back the value of the original investment. If our experts decide that the mix of assets needs to be adjusted, it happens automatically on your behalf, you don't need to do anything. What's more, this service comes at no extra cost. For full details of our governance process please visit our website at royallondon.com/pensioninvestments. If you are in any doubt about the suitability of any particular type of investment, you should seek professional financial advice. Advisers may charge for providing such advice and should confirm any costs beforehand. What is the investment objective? This strategy aims to deliver above inflation growth in the value of the fund and income at retirement, assuming 25% is taken in cash and 75% is used to purchase an annuity. The strategy aims to invest with a level of risk consistent with a balanced risk attitude. Where is the strategy invested? The strategy is invested in the Governed Portfolios shown. The mix of assets in each Governed Portfolio may change at any time in the future if our investment experts decide that a different blend of assets is more appropriate. It's an automatic process and there's no charge for it. You will be automatically invested into the strategy at the point that matches your time to retirement. As you approach retirement your money is automatically switched to ensure a gradual move between the portfolios and fund splits shown below. The switching occurs on a monthly basis on, or as close as possible to, the date on which your birthday falls. Who is this strategy designed for? It has been designed for investors with a balanced attitude to risk. If you're not sure what your risk attitude is you can complete our online Risk Attitude Profiling Questionnaire at royallondon.com/pensioninvestments to give you an idea of your attitude to risk.
Fund splits as at 19th April 2018 are shown in the following table: Balanced Lifestyle Strategy (Annuity) Investment information 15 Years or more from retirement: Governed Portfolio 4 RLP Property 16.40% RLP Long (15yr) Gilt 0.50% RLP Long (15yr) Corporate Bond 1.05% RLP Long (15yr) Index Linked 0.50% RLP Global High Yield Bond 0.20% RLP Short Duration Global High Yield 0.60% RLP Commodity 6.25% RLP Global Managed 74.50% Investment information 10 Years from retirement: Governed Portfolio 5 (Annuity) RLP Cash Plus 0.12% RLP Property 15.00% RLP Long (15yr) Gilt 0.38% RLP Medium (10yr) Gilt 0.12% RLP Medium (10yr) Corporate Bond 1.50% RLP Long (15yr) Corporate Bond 4.50% RLP Medium (10yr) Index Linked 1.22% RLP Long (15yr) Index Linked 3.66% RLP Global High Yield Bond 2.05% RLP Short Duration Global High Yield 1.45% RLP Commodity 7.00% RLP Absolute Return Government Bond 1.00% RLP Global Managed 62.00% Investment information 5 Years from retirement: Governed Portfolio 6 (Annuity) RLP Cash Plus 3.60% RLP Property 12.50% RLP Long (15yr) Gilt 3.33% RLP Medium (10yr) Gilt 3.33% RLP Medium (10yr) Corporate Bond 6.33% RLP Long (15yr) Corporate Bond 6.34% RLP Medium (10yr) Index Linked 5.83% RLP Long (15yr) Index Linked 5.84% RLP Global High Yield Bond 2.15% RLP Short Duration Global High Yield 1.55% RLP Commodity 7.00% RLP Absolute Return Government Bond 4.20% RLP Global Managed 38.00% Investment information at retirement: Annuity Retirement RLP Annuity 100.00% If you want to know more about any of the funds or Governed Portfolios within this Lifestyle Strategy, including details of fund charges, please visit our website royallondon.com/pensioninvestments and view the relevant factsheet.
Details of changes to the strategy The following table documents the last 3 changes that Royal London have made to the portfolios within this strategy. Overview of s 19/04/2018 Governed Portfolio 4 management. We have increased the allocation to property, albeit the exposure remains an underweight; this was funded by reducing our overweight holding of equities. With 19/04/2018 Governed Portfolio 5 (Annuity) management. We have again increased the allocation to 10-year index linked government bonds, bringing this underweight almost in line with the benchmark; this was funded by reducing our overweight holding of equities and from cash. With economies continuing to expand and inflation remaining benign, we are overweight global equities, global high Overview of s 19/04/2018 Governed Portfolio 6 (Annuity) management. We have again increased the allocation to 5-year conventional government bonds, albeit the exposure remains an underweight; this was funded by reducing our overweight holding of equities and from cash. With 08/03/2018 Governed Portfolio 4 place. The change was funded out of property and high yield debt. With 08/03/2018 Governed Portfolio 5 (Annuity) place. We also have increased the allocation to 10-year index linked bonds. The changes were funded out of high yield debt and cash. With continued on next page...
Overview of s 08/03/2018 Governed Portfolio 6 (Annuity) place. We also have increased the allocation to conventional 5-year gilts. The changes were funded out of high yield debt and cash. With economies continuing to expand and inflation remaining benign, we are overweight global equities, global high yield bonds and commodities. 08/02/2018 Governed Portfolio 4 funded out of property. While the Overview of s 08/02/2018 Governed Portfolio 5 (Annuity) funded out of bonds. While the 08/02/2018 Governed Portfolio 6 (Annuity) funded out of bonds. While the 08/10/2015 Annuity Retirement We have replaced the allocation of 75% RLP Medium Index Linked and 25% RLP Deposit with a 100% allocation to RLP Annuity. This fund provides greater diversification and is designed to produce better outcomes for customers.
Royal London 1 Thistle Street, Edinburgh EH2 1DG royallondon.com All literature about products that carry the Royal London brand is available in large print format on request to the Marketing Department at Royal London, St Andrew House, 1 Thistle Street, Edinburgh EH2 1DG. All of our printed products are produced on stock which is from FSC certified forests. The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL. Royal London Marketing Limited is authorised and regulated by the Financial Conduct Authority and introduces Royal London s customers to other insurance companies. The firm is on the Financial Services Register, registration number 302391. Registered in England and Wales number 4414137. Registered office: 55 Gracechurch Street, London, EC3V 0RL. Royal London Corporate Pension Services Limited is authorised and regulated by the Financial Conduct Authority and provides pension services. The firm is on the Financial Services Register, registration number 460304. Registered in England and Wales number 5817049. Registered office: 55 Gracechurch Street, London, EC3V 0RL. 9 May 2018 512Balanced Lifestyle Strategy (Annuity)/255